Cedar Woods zeroes in on Southbank development site

south side

Meanwhile, a developer has bought 135-137 Market Street for around $4 million. The 351 square meter site, which has a permit for a seven-level building, traded at a record rate of $11,500 a square meter.

Colliers agent Daniel Wolman, who did the deal with Leon Ma, Oliver Hay and Tom Isaksson, said it showed the market can and will pay premium prices for prime development sites.

Another larger Southbank site at 7-19 Ballantyne Street is expected to fetch more than $14 million.

The three-story office, marketed by the Colliers agents and Allard Shelton’s Joe Walton, Christian Hatzis and Michael Ryan, is on a 1750 square meter parcel of land opposite the West Gate freeway on-ramp.

Colliers is also on the verge of going public with another listing at 450-460 City Road, a site on seven different titles.

Recent new commercial developments in the area include Hickory’s Market Lane at 68 Clarke Street and the Deague Group’s 101 Moray Street project. In the pipeline is 134 Moray Street and Eleven Eastern, at 11 Eastern Road.

Miter 10

Another development site which has quietly changed hands this week is the Glen Iris Miter 10, understood to have sold for a bumper $30 million-plus.

Buyer and vendor are not keen on any publicity, apparently, and agents declined to comment.

The high-profile site at 15 Weir Street, overlooking the M1 freeway and the railway line, has been supplying building materials for renovations and developments in the affluent eastern suburbs since 1905.

The business and buildings were sold in 2011 to Woolworths for the now-defunct Masters hardware chain, but the vendor held on to the 8687 square meters of land.

Metcash, Miter 10’s owner, pays around $1 million a year in rent for the “ground lease”.

Stonebridge Property Group agents Justin Dowers, Julian White and Kevin Tong, and Gross Waddell ICR’s Andrew Waddell, Danny Clark and Andrew Greenway handled the campaign.

Advise Transact’s Mark Wizel represented the family who bought the property in the late 1960s.

The deal reflects a land price of around $3453 a square meter.

asian-interest

Down the road, but on a smaller scale, two development sites in Glen Iris have sold for a total or more than $12 million or around $3620 a square metre.

CBRE’s Nathan Mufale, who brokered the deals with David Minty, Scott Hawthorne and JJ Heng, said the individual prices were confidential.

However, the land rate points us towards a ballpark price of around $9 million for three houses on 2400 square meters at 11631-1637 Malvern Road; and circa $3 million for the block of flats on 915 square meters at 2 Glenarm Road, behind Gardiner railway station.

The block of flats at 2 Glenarm Road, behind Gardiner railway station.Credit:

The Malvern Road properties, on the corner of Burke Road, were sold by a syndicate that had previously amassed the site.

It came with a permit for 52 apartments over four levels and sold on an unconditional basis to a locally based Chinese developer, Mr Mufale said.

The campaign drew seven offers, with four of them coming from Japan, China and Malaysia.

“There is a big appetite from overseas developers who want to build their residential development pipeline – 60 percent of the bids were underpinned by international Asian capital,” Mr Heng said.

“Buyers want to secure permit-approved sites and get ahead of the curve, because they expect Melbourne’s population growth to return over the next 24 months,” he said.

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The owners of the flats on Glenarm Road made around 45 per cent more than they would by selling individually, Mr Mufale said.

“The property was sold to a locally based Malaysian land banker who is taking a long-term position on the property,” Mr Hawthorne said.

Agency office

Commercial agent Burgess Rawson has sold its seventh floor office at 140 Bourke Street for $6.6 million.

The deal for the 664 square meter office reflects a rate of $9940 a square meter. The agents, who run high-profile portfolio auctions in Melbourne, Sydney and Brisbane, didn’t quite triple their money on the transaction.

The seventh floor office of 140 Bourke Street sold for $6.6 million.

The seventh floor office of 140 Bourke Street sold for $6.6 million.Credit:

The office was purchased for $2.8 million in 2013 after developer Michael Drapac converted Australia’s first purpose-built multi-screen cinema into office space.

The agent is moving into new offices at Charter Hall’s Wesley Place at 150 Lonsdale Street.

The next portfolio auction is scheduled for May 11. Among the 30-odd properties coming under the hammer is a row of shops offloaded by Anthony Wilson’s Terraplex.

Terraplex paid $27.5 million for a row of 15 two-storey terraces and shops on Clarendon Street in 2015 and has slowly but steadily sold them down.

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No. 356 houses the South Melbourne Bakery and its neighbor at No.358 is home to mortgage broker Yellow Brick Road.

Burgess Rawson agent Beau Coulter said they are expected to fetch in the high $1 million range while No. 360-362, on the corner of Park Street, which is leased to South Melbourne Fish and Chips and local cafe The Relief Unit, is tipped to go for around $4.5 million.

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